Indian conglomerate Tata Group is reportedly keen to take a stake in troubled Jet Airways, with a view to taking control.
According to sources cited by the Times of India, it is seeking at least 26% with a further 26% by an open offer at a later date.
Jet is seeking a minority stake sale, but Tata is proposing control of the ailing airline which is struggling to pay salaries on time.
Tata already operates two joint venture airline businesses – Vistara and AirAsia India with Singapore Airlines and AirAsia Group respectively.
Jet Airways chairman Naresh Goyal is the majority shareholder while Etihad Airways owns a 24% share.
However, Etihad may offload part or all all of its stake in Jet Airways to Tata Group.
Jet has started a long term cost-cutting programme to eliminate unnecessary overheads and streamline operations including maintenance functions.
It has also actively sought an equity injection in its frequent flyer programme to provide immediate working capital.
